Some other data points to consider:
1. Back in the late 90's there was a massive rush of virgin internet users. People who had previously been only exposed to VHS porn and magazines. If you recall, these were the days when you would open your mailbox and 20 AOL CD's would fall on to the ground. This massive rush of new customers translated into massive sales. There is not a massive rush of fresh faces anymore. North America and Europe are wired almost completely.
This continued up to about 2001.
After 2001 the adult internet market matured (peaked).
I have been around long enough to see the real businessmen come and go. There are a few left that just can not let go of the industry... but the vast majority have moved on.
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2. One pussy, one anus, and one mouth.
Until evolution advances the female body... A woman is only going to have 3 holes and those 3 holes can only be filled a few ways.
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3. Look at the show floor in Vegas. I remember how it was in 1999, 2000, 2001, 2002 and then it slowly started to get smaller and smaller... How many booths in 2007?
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All of the above can be proven with Paycom's and CCBill's statistics. I would love to see either of them post publicly their total transaction volume from 1998 to 2007.
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